Monzo plans to reach new customers in the United States

12 February 2018

Application-based Monzon bank is holding preparatory negotiations with the authorities in the United States to expand its customer reach to the market. Tom Blomfield was talking to the CNBC reporters noting that the startup in at its early stage of conducting the research of the market and the discussions are held on the potential employment.

Blomfield noted that the United States represent an attractive market for the fintech company with affluent opportunities given the fact that the US banking industry haven’t seen any new bank for the last 10 years or so. Monzo plans to take advantage of the favorable conditions and come forth with its unique offering for consumers expecting high banking experience from modern smartphones.

However, the expansion is unlikely to take place in the current year, as the bank needs to rebound after losses accompanying its popularity in the United Kingdom. Last year it was reported that Monzo suffered a pre-tax annual loss in the amount of £7.9 million, while experiencing a 5% weekly increase in the number of customers and 7% raise in the volumes of transactions. Hence, the US market goals will apparently take off as early as in 2019 or 2020.

At the moment the company is dealing with the transition of its existing prepaid card users to the current account scheme while piloting overdraft feature in the beta test program.